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Brief: Citicorp Sells Offshore Outsourcing Share
The sale of its interest in an Indian outsourcer, to Infosys, effectively quadruples Citicorp's initial investment.
W. David Gardner
April 20, 2006
1 Min Read
The Citicorp stake in Progeon Limited has been sold to Infosys Technologies Limited, according to an announcement Thursday. Under the terms, the Citicorp unit has parlayed a $20 million 2002 investment in the offshore outsourcing operation in India into $115 million.
Infosys said it is buying Citicorp International Finance Corp.'s 23 percent stake in Progeon, a business process management (BPM) provider based in Bangalore, India. When Progeon was launched four years ago, Infosys and Citigroup indicated Infosys would provide $5 million in start-up funding and Citigroup, $20 million.
In the announcement, Infosys said the transaction would be paid in cash and is expected to be completed in July.
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